Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. stocks slip as focus shifts to key inflation data

Published 28/02/2024, 01:22
Updated 28/02/2024, 21:38
© Reuters U.S. stocks slipped Wednesday, though losses were kept in check by the broadening of the rally beyond big tech as investors continued to digest ongoing quarterly earnings ahead of the Fed's key inflation measure due Thursday.    

By 15:30 ET (20:30 GMT), the Dow Jones Industrial Average fell 50 points, or 0.1%, S&P 500 fell 0.1%, lower and NASDAQ Composite dropped 0.5%.

Signs of cooling in economy ahead PCE inflation in focus

The U.S. economy expanded at a 3.2% annualized rate in the fourth quarter, revised slightly down from the previously reported 3.3% pace, and a drop from 4.9% growth the prior quarter.

"While the minimal revision to fourth-quarter GDP underscores the ongoing storyline of a strong economy and resilient consumer [...] momentum clearly slowed from an outsized rise of near 5% in the third quarter into year-end," Stifel said in a note. 

The weaker growth data come just a day ahead of the PCE price index, the Fed’s preferred inflation gauge, that is likely to factor into the central bank’s outlook on interest rates. 

"The positive economic outlook bodes well for corporate earnings," said Salvatore Ruscitti, U.S. equities strategist with MRB Partners. "Earnings growth should be less narrow this year, thereby supporting a broadening of equity market leadership."

Beyond Meat sizzles on margin outlook; TJX continues retail-earnings parade 

Beyond Meat Inc (NASDAQ:BYND) surged over 32% after reporting better-than-expected quarterly revenue, and also forecasting a improved margins in the second-half of the year amid a turnaround plan. 

“Our 2024 plan includes taking steps to steeply reduce operating expense and cash use,” Beyond Meat CEO Ethan Brown said in a statement.

TJX Companies (NYSE:TJX) rose 1% after the retailer reported higher-than-anticipated sales growth in the fourth quarter, but offered up soft future guidance, which some on Wall Street believe is conservative and likely beatable.

Urban Outfitters (NASDAQ:URBN), meanwhile, slumped 13% on disappointing earnings.

Ebay shines on earnings stage, Bumble stumbles after app backtrack

E-commerce site eBay (NASDAQ:EBAY) rose 8% on stronger-than-expected earnings and guidance that likely paves the way for a return to mid-single-digit gross merchandise value growth in 2025, Deutsche Bank said in a note.

Online dating company Bumble (NASDAQ:BMBL) lost 14% on weak revenue guidance amid plans to revamp its dating app to boost user growth. The stock will likely remain rangebound until there is "evidence of an improvement in the top of funnel in North America or the Bumble App relaunch accelerates revenue growth," UBS said in a note.

Crypto stocks surge as bitcoin tops $60K

Cryptocurrency stocks including Marathon Digital Holdings Inc (NASDAQ:MARA), Riot Platforms (NASDAQ:RIOT), and Coinbase Global Inc (NASDAQ:COIN) surged, with the latter hitting a new 52-week high, underpinned by a jump in bitcoin above $60,000. 

The move higher comes ahead of the crypto's halvening -- expected as soon as April - that occurs roughly every four years and cuts the reward for mining new blocks in half.

Halvening events in both 2012, 2016, and 2020 had preceded previous bull runs for BTC. 

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.